The document summarizes the results of a performance audit of the Bryan/College Station Convention & Visitors Bureau (CVB). The audit reviewed the CVB's accounting procedures, direct economic impact, expenditures, and management/governance. It found that 85% of transactions reviewed were sufficient but some lacked oversight, documentation, or verifiable business purpose. It provided recommendations to improve the CVB's strategic direction, board engagement, and use of impact estimation tools. However, the CVB only concurred with some recommendations and not others like improving liquidity or implementing job costing.

1. Bryan/College Station
Convention & Visitors Bureau
Performance Audit
City Council Workshop
May 16, 2016

2. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
We reviewed CVB ……
• Accounting procedures & financial management
• Direct impact
• Expenditures
• Management and governance

3. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Transaction Sample Results
Result Number Percentage Amount
Percentage
(monetary)
Sufficient 297 85.8% $ 733,800 88.9%
Lack of Oversight 10 2.9% $ 28,700 3.5%
Lack of Documentation/Evidence 25 7.2% $ 52,500 6.4%
Unverified Business Purpose* 14 4.0% $ 10,400 1.3%
* Based on the documentation, we were unable to ascertain the business of the transaction. This does not mean that the
transaction did not have a legitimate business purpose, only it was not evident in the documentation.
Accounting & Financial Mgt.

4. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Reserve Growth Over Time
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Cash and Reserves Liabilities
$
Accounting & Financial Mgt.

5. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Event Impact Rating
Rating
# of Events
(2010)
% of Total
(2010)
# of Events
(2015)
% of Total
(2015)
1 151 62.9% 190 59.4%
2 36 15.0% 74 23.1%
3 31 12.9% 41 12.8%
4 12 5.0% 14 4.4%
5 10 4.2% 1 0.3%
Direct Impact

6. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
CVB Expenditures from FY10 – FY15
FY10 FY11 FY12 FY13 FY14 FY15
Salaries &
Benefits
501,000
-7%
530,000
6%
539,000
2%
567,000
5%
703,000
24%
750,000
7%
Marketing
431,000
25%
399,000
-8%
863,000
116%
510,000
-41%
528,000
4%
467,000
-11%
Operations
347,000
2%
339,000
-2%
420,000
24%
301,000
-28%
313,000
4%
316,000
1%
Travel &
Training
103,000
1%
76,000
-26%
98,000
29%
97,000
-1%
105,000
7%
115,000
10%
Total:
1,382,000
4%
1,344,000
-3%
1,921,000
43%
1,475,000
-23%
1,649,000
12%
1,648,000
0%
Expenditures

7. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
FY15 Map of Out-of-State CVB Travel
Expenditures

8. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
2015 Events by Origin
Event
Origin
Number
of Events
Total
Attendees
Out-of-State 13 9,985
TAMU 114 21,841
Texas 184 162,819
Total: 311 194,645
Expenditures

9. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
29% Turnover of Fulltime Employees (FY13 – FY15)
Common causes for turnover
• Inadequate compensation
• Lack of opportunities for advancement
• Perception of unfair treatment
• Feeling undervalued
• Job stress
Mgt. & Governance

10. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
29% Turnover of Fulltime Employees (FY13 – FY15)
Common causes for turnover
• Inadequate compensation
• Lack of opportunities for advancement
• Perception of unfair treatment
• Feeling undervalued
• Job stress
• Or some other cause
Mgt. & Governance

11. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
CVB Strategic Planning
Mission Statement
“…Enhance economic and
social growth in Bryan, College
Station, and the Brazos Valley
by marketing, promoting,
developing, and coordinating
tourism, conventions, sports,
and hospitality opportunities.”
Mgt. & Governance

12. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Comparison Summary of Impact Estimators
DMAI IMPLAN
Event People
Estimated
Spending/
Person
Estimated
Direct
Impact
Estimated
Spending/
Person
Estimated
Direct
Impact
Texas Bluebird Symposium 60 $ 313.07 $ 18,784 $ 115.35 $ 6,921
PrimeTime Sports Inc. 21,511 $ 124.82 $ 2,685,035 $ 18.69 $ 401,989
IFA/VTD Youth Fast Pitch 13,243 $ 125.35 $ 1,659,954 $ 18.69 $ 247,483
Gulf Coast Appaloosa Horse Club 1,500 $ 124.38 $ 186,575 $ 75.96 $ 113,942
Greater Houston Quarter Horse Assoc. 1,200 $ 126.26 $ 151,507 $ 56.76 $ 68,106
Mgt. & Governance

13. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & AMgt. & Governance
Executive Board
(7 Members)
At-Large Board
(11 Members)

14. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
Audit Recommendations Concur
1. Take steps to reach a reasonable liquidity ratio. No
2. Consider implementing job costing procedures to better understand allocation of resources and
cost structure of the CVB.
No
3. Reevaluate the costs and benefits of expenditures. No
4. Strategic direction should be determined by the CVB’s goals and objectives, and measureable
objectives should be created to guide strategic development.
Yes
5. Utilize the DMAI Calculator as an internal device to assist in decision making regarding event
selection and staff effort in pursuing event opportunities.
Partial
6. Consider emphasizing Board engagement with CVB strategy development and the formation of
an advisory committee.
No

15. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
Audit Recommendations Concur
1. Take steps to reach a reasonable liquidity ratio. No
2. Consider implementing job costing procedures to better understand allocation of resources and
cost structure of the CVB.
No
3. Reevaluate the costs and benefits of expenditures. No
4. Strategic direction should be determined by the CVB’s goals and objectives, and measureable
objectives should be created to guide strategic development.
Yes
5. Utilize the DMAI Calculator as an internal device to assist in decision making regarding event
selection and staff effort in pursuing event opportunities.
Partial
6. Consider emphasizing Board engagement with CVB strategy development and the formation of
an advisory committee.
No

16. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
$1 -$2 Million Revenue Category Scatter Plot
Recommendations
y = -0.0142x + 0.2589
R² = 0.0399
0%
20%
40%
60%
80%
100%
0 2 4 6 8 10
ReservePercentage
Contract Length (Years)

17. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
All Revenue Categories Scatter Plot
Recommendations
y = 0.0024x + 0.2362
R² = 0.0034
0%
20%
40%
60%
80%
100%
0 5 10 15 20 25 30
ReservePercentage
Contract Length (Years)

18. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
Audit Recommendations Concur
1. Take steps to reach a reasonable liquidity ratio. No
2. Consider implementing job costing procedures to better understand allocation of resources
and cost structure of the CVB.
No
3. Reevaluate the costs and benefits of expenditures. No
4. Strategic direction should be determined by the CVB’s goals and objectives, and measureable
objectives should be created to guide strategic development.
Yes
5. Utilize the DMAI Calculator as an internal device to assist in decision making regarding event
selection and staff effort in pursuing event opportunities.
Partial
6. Consider emphasizing Board engagement with CVB strategy development and the formation of
an advisory committee.
No

19. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
Audit Recommendations Concur
1. Take steps to reach a reasonable liquidity ratio. No
2. Consider implementing job costing procedures to better understand allocation of resources and
cost structure of the CVB.
No
3. Reevaluate the costs and benefits of expenditures. No
4. Strategic direction should be determined by the CVB’s goals and objectives, and measureable
objectives should be created to guide strategic development.
Yes
5. Utilize the DMAI Calculator as an internal device to assist in decision making regarding event
selection and staff effort in pursuing event opportunities.
Partial
6. Consider emphasizing Board engagement with CVB strategy development and the formation of
an advisory committee.
No

20. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
Audit Recommendations Concur
1. Take steps to reach a reasonable liquidity ratio. No
2. Consider implementing job costing procedures to better understand allocation of resources and
cost structure of the CVB.
No
3. Reevaluate the costs and benefits of expenditures. No
4. Strategic direction should be determined by the CVB’s goals and objectives, and measureable
objectives should be created to guide strategic development.
Yes
5. Utilize the DMAI Calculator as an internal device to assist in decision making regarding event
selection and staff effort in pursuing event opportunities.
Partial
6. Consider emphasizing Board engagement with CVB strategy development and the formation of
an advisory committee.
No

21. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & A
Audit Recommendations & CVB’s Response
Recommendations
The DMAI Calculator is most effective for:
• Quickly determining whether an event is worth pursuing
• Offering consistency across event measures
• Easier comparison across cities
• Determining better allocation of resources
We advise skepticism if the Calculator is use for:
• Demonstrating to policymakers the overall impact of CVB events
• Justifying budget request

22. Accounting & Financial Mgt. Direct Impact Expenditures Mgt. & Governance Recommendations Q & AQ & A